Netflix offers all-cash deal for Warner to head off Paramount

20th Jan 2026 12:42

(Sharecast News) - Netflix on Tuesday sweetened its $82.7bn offer for Warner Bros Discovery's (WBD) studios and streaming divisions, converting the bid to an all-cash deal in an attempt to trump a hostile bid from Paramount Skydance.

The streaming service company had originally tabled a cash-and-shares bid - backed by WBD - valuing the business at $27.75 a share.

Both companies said the switch "simplifies the transaction structure, provides greater certainty of value for WBD stockholders, and accelerates the path to a WBD stockholder vote".

Netflix said the offer would enable WBD investors to vote on the proposed deal as soon as April.

"Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty at $27.75 per share in cash, plus the value from the planned separation of Discovery Global," said Ted Sarandos, the streamer's co-chief executive.

WBD also said it was making changes to parts of the business not involved in the sale. The broadcaster is spinning off traditional TV channels like CNN and TNT and its cable business into a separate publicly traded company.

Paramount has argued that the new unit would be worthless and believes its $108bn proposal to buy WBD in its entirety is a better deal for shareholders. The WBD board has twice rebuffed the rival offer.

Last week, Paramount said it planned to nominate directors to WBD's board to vote against the approval of the Netflix deal, and filed a lawsuit seeking disclosure of financial information related to the agreement. On Thursday, a judge at a Delaware court rejected Paramount's lawsuit.

Under the Netflix deal, the streaming company would take on assets such as Warner Bros, the studio behind franchises including Harry Potter, Superman and Batman, and HBO, home to shows including Game of Thrones, The White Lotus and Succession.

Reporting by Frank Prenesti for Sharecast.com